Kinder Morgan Interstate Gas Transmission LLC
Fourth Revised Volume No. 1-B
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Effective Date: 12/01/2000, Docket: RP01- 70-000, Status: Effective
Third Revised Sheet No. 89A Third Revised Sheet No. 89A : Effective
Superseding: First Revised Sheet No. 89A
GENERAL TERMS AND CONDITIONS OF SERVICE - continued
36.5 Capacity Release.
With the exception of short-term (less than one year) capacity
release transactions that occur during the period March 27,
2000 until September 30, 2002, the maximum price cap for the
release of capacity under a Negotiated Rate agreement shall be
the Recourse Rate. Transporter and a Releasing Shipper may,
in connection with their agreement to a negotiated rate, agree
upon payment obligations and credit mechanisms in the event of
capacity releases that vary from or are in addition to those
set forth in Section 23.13 of these General Terms and
36.6 Rate Treatment.
Transporter shall have the right to seek in future general
rate proceedings discount-type adjustments in the design of
its rates related to negotiated rate agreeements that were
converted from pre-existing discount adjustments to negotiated
rate agreements, provided that the type of pre-existing
service is not altered as a result of the conversion to a
negotiated rate. In those situations, Transporter may seek a
discount-type adjustment based upon the greater of: (a) the
negotiated rate revenues received or (b) the discounted rate
revenues which otherwise would have been received.
36.7 Right of First Refusal.
The right of first refusal provided with respect to certain
Shipper's firm service agreements, as described in Section 18
of the General Terms and Conditions, shall not apply to firm
service agreements with Negotiated Rates, unless otherwise
agreed to in writing by Transporter.
36.8 Negotiated Rate Surcharge and Fuel Retention Components.
If Transporter negotiates surcharge or fuel retention
percentage rate components at lower than the maximum rate
level for those components as part of a Negotiated Rate
agreement, it will assume any risk of under-recovery of costs
or fuel retention from negotiated shippers in order to ensure
that its recourse Shippers are not adversely affected due to
Negotiated Rate agreements with individual Shippers. If
Transporter negotiates specific surcharge components of its
rates, rather than total rates, as part of a Negotiated Rate
agreement, the discount order policy in Section 33 of the
General Terms and Conditions shall not apply.